ACCT 304 Week 8 Exam - Questions and Answers

Week 8 Exam 1. Question : (TCO 1) The acquisition costs of property, plant, and equipment do not include Question 2. Question : (TCO 3) Our company exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively. Question 3. Question : (TCO 2) The exclusive right to display a symbol of product identification is a Question 4. Question : (TCO 4) The overriding principle for all depreciation methods is that the method must be Question 5. Question : (TCO 4) On September 30, 2013, our company purchased a machine for $100,000. The estimated service life is 10 years, with a $10,000 residual value. Our company records partial-year depreciation based on the number of months in service. Depreciation for 2013 using the straight-line method is Question 6. Question : (TCO 4) A change from the straight-line method to the sum-of-years'-digits method of depreciation is handled as Question 7. Question : (TCO 5) The investment category for which the investor's "positive intent and ability to hold" is important is Question 8. Question : (TCO 5) If Father Company owns 17% of the common stock of Daughter Company, then Father Company typically Question 9. Question : (TCO 4) Interest is not capitalized for Question 10. Question : (TCO 2) Software development costs are capitalized if they are incurred Question 11. Question : (TCO 4) Depreciation, depletion, and amortization Question 12. Question : (TCO 5) Which of the following securities would be considered held-to-maturity? Question 13. Question : (TCO 1) The capitalized cost of equipment excludes Question 14. Question : (TCO 3) The basic principle used to value an asset acquired in a nonmonetary exchange is to value it at Question 15. Question : (TCO 2) Research and development expense for a given period includes Question 16. Question : (TCO 4) Depreciation, depletion, and amortization Question 17. Question : (TCO 5) The income statement reports changes in fair value for which type of securities? Question 18. Question : (TCO 5) Accumulated Other Comprehensive Income in the shareholders' equity section of the balance sheet reflects changes in the fair value of securities for which type of securities? Question 19. Question : (TCO 5) The equity method of accounting for investments in voting common stock is appropriate when